Chapter 1 Quiz Review MIS

Explain Porter's Five Forces Model and the role it plays in decision making

Buyer Power, Supplier Power, Threat of Substitute Products or Services, Threat of New Entrants, and Rivalry among existing competitors make up the Five Forces model. Buyer power is the ability of buyers to affect the price they must pay for an item. Supplier power is the suppliers ability to influence the prices they charge for supplies. Threat of substitute products or services in high when there are many alternatives to a product or service and low when there are few alternatives from which to choose. Threat of new entrants is high when it is easy for new competitors to enter a market and low when there are significant barriers to joining a market. Rivalry among existing competitors is high when competition is fierce in a market and low when competitors are more complacent.

How can a manager turn data into information?

By analyzing the data and converting it into meaningful and useful context

The MIS Solution

Common departments working interdependently Input process output, feedback

Outlier

Is a data value that is numerically distant from most of the other data points in a dataset

Velocity

The analysis of streaming data as it travels

Productivity

The rate at which goods and services are produced based on total output given total inputs

The core drivers of the Information Age

data, information, business intelligence, knowledge

Marketing

supports sales by planning, pricing, and promoting goods or services

Services

tasks people perform that customers will buy to satisfy a want or need

data democratization

the ability for data to be collected, analyzed, and accessible to all users

Analytics

the science of fact-based decision making

Predictive Analytics

use techniques that extract information from data and use it to predict future trends and identify behavioral patterns

Why is it important for a company to operate cross-functionally?

- Because the decisions/actions by one dept. can affect other depts for the firm to be successful all depts must work together as a single unit sharing common info and not operate independently (or in silo) - each dept has its own focus on data, but none can work independently if the company is to operate as a while. all dept's must work together as a single unit sharing common info and not operate independently - companies that operate departmentally are seeing only one part of the company (elephant blind man ex) a critical mistake that hinders successful operation -systems are the primary enabler of cross functional operations to integrate all depts

Management Information Systems (MIS)

A business function, like accounting and human resources, which moves information about people, products, and processes across the company to facilitate decision-making and problem-solving

entry barrier

A feature of a product or service that customers have come to expect and entering competitors must offer the same for survival

Business Strategy

A leadership plan that achieves a specific set of goals or objectives

Porter's five forces model

Analyzes the competitive forces within environment in which a company operates to assess the potential for profitability in an industry

MIS Department Roles and Responsibilities

Chief Information Officer (CIO) Chief Knowledge Officer (CKO) Chief Privacy Officer (CPO) Chief Security Officer (CSO) Chief Technology Officer (CTO) Chief Intellectual property officer Chief automation officer Chief sustainability officer Chief user experience officer

What is data and why is it important to a business?

Data are raw facts that describe the characteristics of an event or object. Before the information age, managers manually collected and analyzed data, a time-consuming and complicated task without which they would have little insight into how to run their business.

Variable

Data characteristic that stands for a value that changes or varies over time

information

Data converted into a meaningful and useful context

Porter's three generic strategic

Generic business strategies that are neither organization nor industry specific and can be applied to any business, product, or service.

Rivalry among existing competitors

High when competition is fierce in a market and low when competitors are more complacent

The threat of new entrants

High when it is easy for new competitors to enter a market and low when there are significant entry barriers to joining a market

The threat of substitute products or services

High when there are many alternatives to a product or service and low when there are few alternatives from which to choose

Business Intelligence

Information collected from multiple sources such as suppliers, customers, competitors, partners, and industries that analyzes patterns, trends, and relationships for strategic decision making

Weaknesses

Lack of strategic direction

Explain MIS and the role it plays in a company and in global business?

M.I.S. is a business function that moves information about people products and processes across the company to facilitate decision making and problem solving. M.I.S. helps a business operate cross-functionally.

Structured data sources

Machine generated data and human generated data

Unstructured data

Not defined and does not follow a specified format

product differentiation

Occurs when a company develops unique differences in its products or services with the intent to influence demand

first-mover advantage

Occurs when an organization can significantly impact its market share by being first to market with a competitive advantage

Chief Knowledge Officer (CKO)

Responsible for collecting, maintaining, and distributing the organization's knowledge

Chief Privacy Officer (CPO)

Responsible for ensuring the ethical and legal use of information

Explain systems thinking and how it supports business operations.

Systems thinking is a way of keeping all operations on track by monitoring inputs and outputs and gathering feedback on each part. It is important to business operations because decisions can be made with regards to the entire system rather than from one department.

fact

The confirmation or valudation of an event or object

Volume

The scale of data

Supplier Power

The suppliers' ability to influence the prices they charge for supplies (including materials, labor, and services)

veracity

The uncertainty of data, including biases, noise, and abnormalities

Why would a company want to have a CIO, CPO, CSO?

These positions hold responsibility and oversee MIS

Do you agree that MIS essential for businesses operating in the Information Age?

Yes. MIS is a business function that moves information about people products and processes across the country to facilitate decision making and problem solving. MIS helps a business operate cross functionally. Reduces time, make a company more technologically sound

Big Data

a collection of large, complex data sets, including structured and unstructured data, which cannot be analyzed using traditional database methods and tools

System

a collection of parts that link to achieve a common purpose

structured data

a defined length, type, and format and includes numbers, dates, or strings such as Customer Address

Report

a document containing data organized in a table, matrix, or graphical format allowing users to easily comprehend and understand information

Competitive advantage

a feature of a product or service on which customers place a greater value than they do on similar offerings from competitors

Stakeholder

a person or group that has an interest or concern in an organization

Static report

a report created once based on data that does not change

business unit

a segment of a company (such as accounting, production, marketing) representing a specific business function

snapshot

a view of data at a particular moment in time

Systems Thinking

a way of monitoring the entire system by viewing multiple inputs being processed or transformed to produce outputs while continuously gathering feedback on each part

Internet of Things (IoT)

a world where interconnected, Internet-enabled devices or "things" can collect and share data without human intervention

knowledge assets

also called intellectual capital, are the human, structural, and recorded resources available to the organization

dynamic reports

changes automatically during creation

If the supplier power is high, the supplier can influence the industry by:

charging higher prices, limiting quality or services, shifting costs to industry participants

supply chain

consists of all parties involved, directly or indirectly, in obtaining raw materials or a product

Strengths

core competencies, market leaders, cost advantages, excellent management

switching costs

costs that make customers reluctant to switch to another product or service (reduce buyer power by manipulating it)

Machine-generated data

created by a machine without human intervention.

Human-generated data

data that humans, in interaction with computers, generate

Finance

deals with strategic financial issues including money, banking, credit, investments, and assets

Chief Automation Officer (CAO)

determines if a person or business process can be replaced by a robot or software

variety

different forms of structured and unstructured data

opportunities

expanded product line, increase in demand, new markets, new regulations

Data scientist

extracts knowledge from data by performing statistical analysis, data mining, and advanced analytics on big data to identify trends, market changes, and other relevant information

knowledge facilitators

help harness the wealth of knowledge in the organization

SWOT analysis

identifying internal strengths (S) and weaknesses (W) and also examining external opportunities (O) and threats (T)

Machine-generated unstructured data

includes satellite images, scientific atmosphere data, and radar data

Human-generated unstructured data

includes text messages, social media data, and emails

Knowledge

includes the skills, experience, and expertise, coupled with information and intelligence, that creates a person's intellectual resources

Knowledge workers

individuals valued for their ability to interpret and analyze information

Feedback

information that returns to its original transmitter (input, transform, or output) and modifies the transmitter's actions

MIS skills gap

is the difference between existing MIS workplace knowledge and the knowledge required to fulfill the business goals and strategies

human resources

maintains policies, plans, and procedures for the effective management of employees

Operations Management

manages the process of converting or transforming resources into goods or services

goods

material items or products that customers will buy to satisfy a want or need

Algorithms

mathematical formulas placed in software that performs an analysis on a data set

Threats

new entrants, substitute products, shrinking markets, costly regulatory requirements

chief sustainability officer (CSO)

oversees the corporation's "environmental" programs such as helping adapt to climate change and reducing carbon emissions

Sales

performs the function of selling goods or services

Data

raw facts that describe the characteristics of an event or object

Accounting

records, measures, and reports monetary transactions

Machine to Machine (M2M)

refers to devices that connect directly to other devices

Chief Information Officer (CIO)

responsible for 1) overseeing all uses of MIS and 2) ensuring that MIS strategically aligns with business goals and objectives

Chief Data Officer (CDO)

responsible for determining the types of information the enterprise will capture, retain, analyze, and share

Chief Security Officer (CSO)

responsible for ensuring the security of business systems and developing strategies and safeguards against attacks by hackers and viruses

Chief Technology Officer (CTO)

responsible for ensuring the speed, accuracy, availability, and reliability of the MIS

loyalty programs

reward customers based on their spending (reduce buyer power)

Buyer power

the ability of buyers to affect the price they must pay for an items. Factors used: Number of customers Their sensitivity of prices Size of orders Differences between competitors Availability of substitute products

competitive intelligence

the process of gathering information about the competitive environment, including competitors' plans, activities, and products, to improve a company's ability to succeed

Anomaly Detection

the process of identifying rare or unexpected items or events in a data set that do not conform to other items in the data set

Production

the process where a business takes raw materials and processes them or converts them into a finished product for its goods or services

Business Analytics

the scientific process of transforming data into insight for making better decisions

Prescriptive Analytics

use techniques that create models indicating the best decision to make or course of action to take

Descriptive Analytics

use techniques that describe past performance and history

Four Common Characteristics of Big Data

variety, veracity, volume, velocity

Information Age

when infinite quantities of facts are widely available to anyone who can use a computer

Chief User Experience Officer (CUEO)

will create the optimal relationship between user and technology

Chief Intellectual Property Officer (CIPO)

will manage and defend intellectual property, copyrights, and patents